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Posted on Nov 25, 2015 in Financial

Prepare your online business for tax time

If you own an online business, you should know that never is too early to properly track, prepare and submit your taxes. Nowadays economy makes many businesses to struggle to make profit and remain on the market, so if you have your tax preparation Tucson az completed, it will help you maintain your business on the floating line. Business tax preparation maxes the difference between a bust and a boom, so you should contact a tax preparation agency to help you deal with the process. They will offer you the experience, knowledge and professionalism you need when you try to get through the ever-changing taxation laws. However, before heading to a tax preparation agency you should know some basic things you have to do for having a successful tax return.

Steps in preparing for tax time

You should take care to know all tax deadlines, because if you miss one of them it can cause you expensive penalties. Because your business’s nature is a special one, you should know that you have to submit for additional documents to the IRS. By April, you should either have ready your papers for a tax return or for applying for a tax extension. You have to gather all your receipts, and because you have an online business, you can easily store them online. You should organize them by adding all the photos and scans of the receipts you have and the other important documents from your business in a designed folder. You should have all your books up-to-date to give you an accurate image about your business’s expenses and income. If you hired a contractor during the year, and you paid him more than $600 you should ask him to complete Form 1099 and send a copy to the IRS.

What deduction are available for you

There are some deductions that are available for your business. The first deduction you can claim for is the one for home office, but you have to qualify for some requirements. You have to use that area only for your business, you have to use it on a regular basis and you should conduct there the most important activities from your business. Other deduction is applied if you take workshops and classes that add value to your business. You can get a deduction if you have a phone, which is used only for business purposes. In addition, you can claim a deduction for your internet bill. The web hosting and the cost of domain registration are deductible. All the custom themes, software or store templates you purchase for your online business are deductible. If you ship goods to your customers, you can claim for a deduction for the packaging and postage costs. All the costs for buying equipment you use for your business can be recovered if you include them on your tax return. This equipment includes cameras, computers or even cell phones. After following these simple steps, talk with a tax preparer to be sure that you get the right return.